Effectuation and Over–Trust: Debating Goel and Karri

Abstract

In their article on entrepreneurship, effectuation, and over–trust, Goel and Karri suggest relationships between effectuation, over–trust, and certain psychological characteristics of entrepreneurs. In this response we debate their article. Goel and Karri are correct in claiming that effectuation supposes over–trust. However, we argue that effectual logic works in a different way than they presented because it neither predicts nor assumes trust. Goel and Karri's article also draws attention to the behavioral assumptions underlying constructs such as over–(under) trust. Our suggestion is that effectuation is based on alternative behavioral assumptions that open up interesting avenues for future research in entrepreneurship.